“Venezuela is in desperate straits. The oil sector has been deteriorating, and now with the slumping oil prices, they needed cash desperately,” says Michael Shifter, the president of the Inter-American Dialogue, a Washington, D.C.-based group that studies the region.
Shifter says it’s no surprise that Venezuela is trimming back a program that provides oil at subsidized, deferred payment rates to many of its Caribbean neighbors that are dependent on energy imports. Petrocaribe — an alliance of Venezuela and Caribbean nations — was created a decade ago by the late Venezuelan president Hugo Chavez. It provided subsidized oil to countries such as Belize, Haiti and Jamaica.
The subsidies helped Caribbean nations balance their budgets and finance schools, social programs and small businesses and farms. via NPR